Cement sales began to decline after falling demand for housing in new buildings

Cement sales began to decline amid falling demand for housing in new buildings, informed “Kommersant” with reference to the study of “Soyuzcement” (unites large cement producers in Russia).

According to the document, in 2022 the total volume of cement consumption will not exceed 61 million tons, which is only 1% more year-on-year. The previous forecast showed more positive dynamics: consumption should have increased by 5% to 63 million tons. However, according to the results of October, the demand for cement decreased by 6.5% yoy, and in November-December it may decrease by another 15-20% yoy, follows from the Soyuzcement study.

At the same time, according to the results of the first nine months, from January to September, the demand for cement increased by 5.1% in annual terms, during this time it grew to 54.2 million tons.

According to SMPRO Managing Partner Vladimir Guz, in the first quarter, a record increase was recorded, when demand increased by 20% in annual terms, and by the second and third quarters, the dynamics slowed down to 0.3% and 1.4%, respectively. According to him, in the fourth quarter, the demand for cement began to noticeably decline, the difference from last year could be about 10%.

Consumption of cement began to decline due to postponed projects in the construction of office and residential premises, says Alexei Romanenko, senior partner at NEO Center. In particular, according to the calculations of CIAN.Analytics, 7,600 contracts for the purchase of housing in new buildings were concluded in Moscow and the Moscow region, which is 44% lower in annual terms. According to Guz, the demand for housing in new buildings will continue to decline.

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